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Global tech selloff wipes out $1 trillion as AI stocks wobble

Seoul's KOSPI plunged nearly 8% intraday, triggering a circuit breaker, as rising borrowing costs and China competition fuel doubts about AI investments. Stocks have since partly rebounded.

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What happened

Tech and AI-linked shares have sold off sharply worldwide, with South Korea's KOSPI index plunging nearly 8% and triggering its 10th circuit breaker of the year on October 15. Investors have worried about rising interest rates, inflation, AI debt financing and tougher competition from China. South Korea's finance ministry said it would step up market monitoring, and Asian shares have since mostly rebounded after Wall Street gains.

Why it matters

Top AI and semiconductor stocks have lost over $1 trillion in value this week, and analysts warn the tremor could foreshadow a bigger AI crunch for stock markets.

Timeline

  1. Oct 15, 1:10 AM ET: South Korea's KOSPI index plunged nearly 8% intraday, triggering the market's 10th circuit breaker of the year.
  2. Oct 15, 6:46 AM ET: Global technology stocks sold off sharply as rising borrowing costs and China competition soured traders on AI investments.
  3. Oct 15, 10:38 AM ET: Top AI and semiconductor stocks had lost over $1 trillion in value that week amid worries about valuations and higher interest rates.
  4. Oct 15, 9:00 PM ET: South Korea's finance ministry vowed to step up financial market monitoring and watch closely for volatility's impact on bond, currency and short-term money markets.
  5. Oct 16, 2:08 AM ET: Asian shares mostly rebounded after Wall Street gains, though Indonesia shares sank on a market downgrade warning.

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